HB 321 Summary

• Authorizes each county in Hawaii to impose a surcharge on transient accommodations tax at a rate not to exceed 25% of gross rental proceeds, subject to county ordinance adoption by July 1, 2022.

• County surcharge on transient accommodations tax shall be levied beginning January 1, 2023, and shall expire on December 31, 2026.

• Requires counties to conduct a public hearing before adopting a surcharge ordinance, with notice published in a newspaper at least twice within 30 days prior to the hearing.

• The State director of taxation shall collect and administer the county surcharge, with 1% of gross proceeds retained by the State to cover assessment and collection costs, and remaining revenues distributed quarterly to the respective counties.

• Repeals the automatic distribution of $103,000,000 in transient accommodations tax revenues to counties under the prior law; counties must now elect to impose the surcharge under this Act to receive transient accommodations tax revenue.